Coupang (CPNG) Q1 2025 Earnings Call May 06, 2025 05:30 PM ET Company Participants Michael Parker - Vice President, Head of Investor RelationsBom Kim - Founder, CEO & ChairmanGaurav Anand - CFO Conference Call Participants Eric Cha - AnalystStanley Yang - AnalystSeyon Park - Equity Research AnalystJiong Shao - Analyst Operator Hello everyone. My name is Krista and I'll be your conference operator today. At this time, I would like to welcome everyone to the Kupong twenty twenty five First Quarter Earnings Co ...

Financial Data and Key Metrics Changes - The company reported consolidated revenue growth of 11% year over year, or 21% on a constant currency basis [6][17] - Gross profit margin increased by 217 basis points to 29.3%, while adjusted EBITDA margins improved nearly 90 basis points to 4.8% [6][20] - Adjusted EBITDA for the trailing twelve months reached $1.5 billion, with free cash flow exceeding $1 billion [6] Business Line Data and Key Metrics Changes - The Product Commerce segment saw revenue growth of 6% year over year, or 16% in constant currency, with active customers growing by 9% [19] - The Developing Offerings segment experienced a significant revenue increase of 67% year over year, or 78% in constant currency, driven by strong customer engagement in Eats and Taiwan [19][20] - Gross profit for Product Commerce was $2.2 billion, with a gross profit margin of 31.3%, reflecting a margin improvement of over 300 basis points year over year [20] Market Data and Key Metrics Changes - In Taiwan, selection expanded by nearly 500% this quarter, leading to increased customer engagement and spending [11][42] - The company continues to see strong momentum in its Eats segment, sustaining growth and margin improvements throughout 2024 [14][38] Company Strategy and Development Direction - The company is focused on expanding selection, lowering prices, and enhancing delivery experiences to drive sustained growth [7][10] - Significant investments are being made in technology, innovation, automation, and robotics to improve operations and customer experience [9][10] - The company is optimistic about its investments in Taiwan, expecting them to follow a similar trajectory as past investments in Korea [12][43] Management Comments on Operating Environment and Future Outlook - Management noted that there has not been a meaningful impact from recent global events on the business, and they continue to monitor the macroeconomic environment closely [16][29] - The company maintains a growth outlook of approximately 20% for the full year on a constant currency basis, despite potential macroeconomic challenges [29][36] Other Important Information - The board approved a $1 billion share repurchase program as part of the company's capital allocation strategy, allowing for opportunistic buybacks [25][30] - The effective income tax rate was reported at 47%, influenced by losses in early-stage operations in Taiwan [24][25] Q&A Session Summary Question: Impact of macro and tariffs on business - Management indicated limited impact from macroeconomic factors and tariffs, with no significant changes in consumer behavior observed [28][29] Question: Details on the stock repurchase plan - The share repurchase program is designed to act opportunistically based on market conditions, with no fixed term established [30][31] Question: Revenue growth guidance comfort level - Management expressed confidence in achieving the 20% revenue growth target despite the current macro and competitive environment [33][36] Question: Developing offerings loss and margin trends - The company acknowledged increased losses in developing offerings but highlighted strong growth in Eats and Taiwan, expecting continued improvement [34][38] Question: Timeline for the share repurchase program - There is no fixed timeline for the $1 billion repurchase program, and the pace will be opportunistic [40][41] Question: User engagement in Taiwan post-selection increase - Management reported strong growth in Taiwan, with increased engagement and spending following the expansion of selection and the launch of the Wow membership program [42][43] Question: FLC growth and marketplace performance - FLC is growing at a high multiple of the overall business, with marketplace growth outpacing 1P [48][50] Question: Technology investment cycle status - The company is in the midst of a technology investment cycle, with expectations for OG&A expenses to decline as a percentage of revenue in the near to medium term [55][56]

Coupang (CPNG) Q1 2025 Earnings Call May 06, 2025 05:30 PM ET Company Participants Michael Parker - Vice President, Head of Investor RelationsBom Kim - Founder, CEO & ChairmanGaurav Anand - CFO Conference Call Participants Eric Cha - AnalystStanley Yang - AnalystSeyon Park - Equity Research AnalystJiong Shao - Analyst Operator Hello everyone. My name is Krista and I'll be your conference operator today. At this time, I would like to welcome everyone to the Kupong twenty twenty five First Quarter Earnings Co ...

coupang Q1 2025 Financial Results May 6, 2025 Disclaimer Forward-Looking Statements This presentation may contain statements that may be deemed to be "forward-kooking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (together, the "Act") that are intended to enjoy the protection of the safe harbor for for ward looking statements provided by the Act ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File No. 001-40115 COUPANG, INC. (Exact name of Registrant as specified in its charter) Delaware 27-2810505 (State or other jurisdi ...

Net Revenues of $7.9 billion, up 11% YoY and 21% on an FX-neutral basis Exhibit 99.1 Coupang Announces Results for First Quarter 2025 Gross Profit of $2.3 billion, up 20% YoY and 31% on an FX-neutral basis Operating income of $154 million, up $114 million Operating Cash Flow of $2.0 billion and Free Cash Flow of $1.0 billion for the trailing twelve months SEATTLE - (BUSINESS WIRE) May 6, 2025—Coupang, Inc. (NYSE: CPNG) today announced financial results for its first quarter ended March 31, 2025. Q1 2025 Con ...

Coupang (CPNG) is scheduled to report its first-quarter 2025 results on May 6. See the Zacks Earnings Calendar to stay ahead of market-making news.The Zacks Consensus Estimate for CPNG’s first-quarter 2025 revenues is currently pegged at $8.07 billion, indicating a 13.43% increase from the year-ago quarter’s reported figure.The consensus mark for earnings has moved south by a penny to 6 cents per share in the past 30 days. The estimate implies 20% growth year over year.CPNG surpassed the Zacks Consensus Est ...

The most recent trading session ended with Coupang, Inc. (CPNG) standing at $23.37, reflecting a -0.76% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.15%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.09%.Heading into today, shares of the company had gained 6.18% over the past month, outpacing the Retail-Wholesale sector's gain of 0.27% and the S&P 500's loss of 0.21% in that time.Investors will be eagerly watch ...

Group 1: Market Overview - The stock market has recently rebounded as investors assess the impact of tariffs on global trade, yet many stocks remain significantly below their all-time highs [1] - Market drawdowns present opportunities for investors to acquire growth stocks at discounted prices, which can lead to long-term wealth accumulation [2] Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the world's largest manufacturer of advanced semiconductors, serving major clients like Apple and Nvidia, and is positioned well in the growing cloud computing and AI markets [3] - TSMC reported trailing-12-month revenue of $97 billion, with its high-performance computing segment accounting for 59% of sales and experiencing 7% quarter-over-quarter growth [4] - The company boasts a 48.5% operating margin due to its dominant market position, allowing it to sell products at premium prices [5] - TSMC's stock is currently down 27.5% from all-time highs, trading at a price-to-earnings ratio of 21, indicating potential for significant growth over the next decade [6] Group 3: Coupang - Coupang, a South Korean e-commerce platform, is trading over 50% below its all-time highs despite strong business growth and increasing profitability [7] - The company achieved a 29% year-over-year growth in gross profit last quarter, with a gross margin of 29%, and has been positive in free cash flow since early 2023 [8] - Coupang's overall revenue reached $30 billion in 2024, with a 136% year-over-year growth in the first quarter, excluding inorganic revenue [10] - With a market cap of $42 billion, Coupang trades at a price-to-sales ratio above 1, suggesting it is undervalued given its growth potential [11] Group 4: Rocket Lab - Rocket Lab has seen its stock decline nearly 29% from all-time highs, despite a 78% year-over-year revenue increase to $436 million in 2024 [13] - The company currently operates the Electron rocket and plans to launch the Neutron, which has a larger payload capacity, potentially increasing revenue per launch [14] - Rocket Lab is developing a robust space systems division and aims to build a satellite constellation, which could significantly enhance its revenue in the long term [15] - With a market cap of $10 billion, Rocket Lab's stock may appear overvalued relative to its current revenue, but successful execution of its product roadmap could lead to substantial future growth [16]

Core Viewpoint - Coupang's stock has experienced significant volatility since its IPO, losing over 50% of its value but recovering 130% from its May 2022 low, raising questions about the timing for potential investors [1][10]. Group 1: Growth Prospects - Coupang operates in a relatively small market with an addressable population of less than 100 million, compared to competitors like MercadoLibre, which serves over 650 million [2]. - The company has a strong logistics network with over 100 fulfillment centers in South Korea, enabling same-day or next-day delivery for 70% of the population [3]. - The South Korean e-commerce market is projected to grow at a compound annual growth rate (CAGR) of 22%, suggesting ongoing growth potential for Coupang [4]. Group 2: Financial Performance - Coupang's revenue for 2024 is projected to exceed $30 billion, reflecting a 24% increase year-over-year [5]. - The company reported a net income of $66 million in 2024, impacted by a one-time income tax benefit of $776 million in 2023, but generated over $1 billion in free cash flow [5]. - Revenue growth is expected to slow to 14% in 2025, with a slight recovery to 15% in 2026, which may concern investors [6]. Group 3: Valuation Metrics - Coupang's price-to-free cash flow ratio is around 39, above the historical average of 34, indicating a potentially expensive valuation [7]. - The price-to-sales (P/S) ratio has remained stable at 1.3, showing little variance in recent years [7]. - Despite the mixed valuation metrics, the perception of Coupang as a lucrative opportunity may still attract buyers [8]. Group 4: Investment Timing - Current conditions suggest it may not be too late to buy Coupang stock, but the timing may not present a lucrative opportunity given the slowing revenue growth [9][11]. - The stock has significantly declined since its IPO, losing over 80% of its value by May 2022, and even with a recovery, it remains below its all-time high [10].